Archive for October 14th, 2009
Lazard CEO Wasserstein Dead at 61
The Wall Street Journal reports that Bruce Wasserstein, a prominent Wall Street dealmaker and CEO of Lazard Ltd., has died. He was 61.
Obama wants $250 for seniors
President Obama is calling on Congress to send another $250 payment to 57 million seniors and other Americans to stem the economic strain.
Dow 10,000 and Other Nonsense
A reporter from SmartMoney contacted me a couple of weeks ago to ask me to participate in a little game they were hosting. “All you have to do is guess when the Dow will hit 10,000,” she said. “This is just for fun.”
“I’ll do it,” I replied, “but I want to make it clear that this is just a guess. Nobody really knows.” I told her the Dow Jones Industrial Average would reach 10,000 again on October 15th at 10:22am Eastern. I was wrong — but not by much. It actually reached 10,000 at 1:21pm Eastern on October 14th.
I know this because I’ve been sitting here for the past ten minutes refreshing my browser page, waiting for it to happen. And it just did:
The Dow has hit 10,000! We’re saved! The recession is over!
Well, not really. But sometimes it seems like that’s how the media reports things. I find it hilarious that of the three dozen “investing pros” Smart Money polled, my seat-of-the-pants guess was second closest. (Who won the pool? Financial-planning guru Sheryl Garrett, who guessed 10:00am Eastern on October 14th.) Nobody knows what the stock market will do, and the guess of a humble financial blogger is just as good as that of an investing professional.
My brain hurts
While goofing around, waiting for the index to cross that arbitrary but magical line, I read articles linked from Google Finance. One was this piece from MarketWatch about how traders who favor “technical analysis” don’t care so much about Dow 10,000, but are more interested in when the S&P 500 index will cross 1121, which means it will have regained half of what it lost in the bear market. They believe that when the S&P reaches this point, it’ll have momentum to continue to climb.
The interesting part of the article, though, came in the middle. In the “befuddling rally” section, a “chief investment strategist” says that the market’s continued increase is frustrating to those who are waiting for a “sizable price decline” before re-investing.
Do price declines in the market get any more “sizable” than the one we experienced from September 2008 to March 2009? What were these people doing with their money then?
Are there really people who are waiting to invest in stocks because they want the market to fall 5% or 10%? That seems crazy! By waiting, they continue to miss out on market growth. Have they been waiting since June? Since March? Will they finally put their money back into stocks at the start of the next bear market? And will they then pull the money out again when the market hits bottom?
In another MarketWatch article, a second “chief market strategist” is quoted as saying that the Dow breaking 10,000 could bring back a “whole portion of the population that walked away from Wall Street in the last couple of years because of everything that has happened”.
sigh
I don’t even know what to say. This sort of stuff drives me nuts. I guess it’s another reminder that it pays to ignore financial news. I’ll just keep investing my money at regular intervals, thank you very much. All of this guesswork and market timing seems like a bunch of nonsense.
Folks, stick to your investment plan. Don’t try to time the market. Keep your goal in mind, make contributions to your retirement when you can, diversify, and don’t let the financial media mess with your head. They don’t know any more than you do.
Footnote: The Dow closed above 10,000 today for the first time in more than a year. CNN Money writes: “While 10,000 is not a significant milestone on a technical basis, it’s meaningful on a psychological level, analysts say. It could either usher in more buyers or give investors who think the rally has been too much, too soon a reason to retreat.” I love that. It basically says: Well, maybe more people will invest now, or maybe they won’t. Really? You think? See also: Our recent discussion of Mr. Market’s wild ride.
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Dow 10,000: Enjoy It While You Can
Dow 10,000 has arrived, so pop out the champagne, but be wary. Breaking the key psychological level of Dow 10,000 is one thing. Holding onto those gains is quite another.
9 Ways You Can Knock the Socks off Your Next Landlord
This article is by GRS staff writer Adam Baker. Currently, Baker is fat and in debt.
We all know how to rent a typical, cookie-cutter apartment or house. Find a contact number. Set-up a walk through. Fill out the application. Pay your fee and wait for a response.
But sometimes typical just doesn’t cut it.
Maybe you’re looking to secure a unique apartment in an irresistible location. Or you might be seeking the only house for rent in a certain school district. Heck, you may even find yourself in New Zealand needing a short-term (3-month) lease when everyone wants a 6-month minimum. *raises hand*
Whatever your motivation, here are nine ways you can knock the socks off your next landlord or property manager:
- Create a Rental Résumé. Treat this like you would a job search. The majority of applications are going to ask for the same information. Put together a basic one- or two-page document containing this commonly requested information. Even if the landlord or property manager makes you fill out the application anyway, at least you’ll already have everything on hand. Be sure to include:
- Full names of everyone on application
- Dates of Birth
- Contact information (phone and e-mail)
- Current address (length, landlord information, reason for leaving)
- Previous addresses (with additional information)
Social Security numbersPrevious commenters note that you may want to wait to reveal your Social Security information- Current employment information (salary, length, contact information)
- Past employment (with additional information)
- Personal references
- Vehicle information (make, model, plates, driver’s license number)
- Pet(s) information (breed, size, age)
- Pull your own credit report. Use AnnualCreditReport.com, if possible. Pulling your own credit report ahead of time will ensure that you are aware of the information contained in the report. If there are any negative marks, be sure to include a written statement of explanation (especially for any bankruptcies, evictions, or missed rent payments).
- Obtain and include full letters of reference. Most rental applications only ask for the contact information of your references. However, as with a job, you can go the extra mile by including full letters of recommendation from previous landlords, property managers, or apartment complexes. As a property manager, I was more than willing to write these for our best tenants. Many apartment complexes have a standard reference letter they provide to past tenants upon request.
- Provide copies of commonly requested “further information”. This is especially important for the self-employed or those with inconsistent employment length. Commonly requested information can include copies of recent paystubs, recent years’ tax returns, net worth statements, bank statements, and income/expense reports for small businesses. Also, landlords may request copies of identification like driver’s licenses, social security cards, or birth certificates.
- Look sharp. Whether you like it or not, appearance does matter, especially for first impressions. Wash the purple dye out of your mohawk, lose the three wolves T-shirt, and dress business casual. (J.D.’s note: Did anyone notice that Dwight was wearing the three wolves t-shirt on The Office recently? I just about died laughing.)
- Be five minutes early. Waiting does not impress anyone.
- Find common ground. In any social encounter, discussing a topic that is familiar to both parties is one of the fastest ways to build rapport. When Courtney and I were searching for apartments here in Auckland, we talked to many different agents and owners. Early on in each discussion, I brought up the fact that I had owned a property management company back in the States. It gave us an immediate connection and built instant trust. While you may not have direct real estate experience, chances are there will be many opportunities for you to find common ground of your own.
- Know your needs and wants ahead of time. This is a important. Decide ahead of time what features are absolute musts and which are more negotiable. For example, you may know that you need a fenced in backyard for the dog. Or, you may only be willing to consider homes with a detached garage for working on your cars as a hobby. On the other hand, an included washer/dryer may only be a strong want. You’d be willing to purchase these if the rest of the property fit your needs. Get clear on this distinction and be able to articulate this to your potential landlord or manager.
- Don’t be afraid to ask questions. As a property manager, I always had a weird feeling about tenants who appeared nervous or who seemed afraid to ask questions. The potential tenants whom impressed me the most appeared confident, stated what they were looking for, and asked specific questions about the property. For example, it’s perfectly reasonable (and somewhat expected) to inquire about the average costs of monthly utilities.
Once you’ve established yourself as a strong candidate…leverage it! Knocking the socks off your landlord is not just for fun! After positioning yourself as an ideal applicant, don’t be afraid to start negotiating.
Here in Auckland, Courtney and I had luck negotiating ourselves into a three-month lease even though it ended in the middle of December (bad timing when trying to re-rent). At our last apartment in the States, the complex ended up waiving both the application fee and our required deposit.
Try asking for a 10% rent discount. Many apartment complexes run unadvertised specials, and the individual landlord will often discount if he believes you’ll be a quality tenant.
I’ve seen people have luck requesting upgrades on appliances or requiring that an owner furnish a washer/dryer when previously it wasn’t included. If your condo or apartment charges extra for amenities (gym, pool, parking), try asking for access to be included in your rent.
Most people are scared because they think it’s uncommon to ask for more. I’ve been on both sides of the rental equation and this sort of negotiation happens all the time. If you don’t ask, the answer will always be “no”. So get out there, impress some people, and take your apartment or house hunting to the next level!
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JPMorgan Earns $3.6B, Tops Estimates
JPMorgan Chase, the first of the big banks to
report third-quarter earnings, says its loan losses are still high
and are expected to remain that way for the foreseeable future, a
troubling sign for the economy.
Wall Street Set for $140 Billion Payday
Workers at major Wall Street firms will make as much as $140 billion this year, and the reaction from the public and Congress can already be predicted. According to a new report, employees at nearly two dozen financial-based entities can expect to earn even more than they did 2 years ago.
Intel Still Upbeat on PC Market Recovery
Intel Corp. has been asserting for months that the personal computer business is rebounding from its deepest slump in nearly a decade. Its stock jumped late Tuesday on signs things are picking up faster than expected, despite a few lingering trouble spots.
Could smoking cost you a job?
Employers shoulder a majority of workers’ health care costs, and many are seeking ways to keep those costs down. Shedding smokers and overeaters is one way.
